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Central Goods and Service Tax (Fourth Amendment) Rules, 2017

Circular No.ES/130/2017-18                                                                                       July 31, 2017

To: Members of the Council

Sub:  Central Goods and Service Tax (Fourth Amendment) Rules, 2017

Dear Member,

CBEC has issued Notification No. 17/2017 - Central Tax dtd 27.07.2017 by making amendments in the Central Goods and Service Tax Rules, 2017. These rules may be called as the Central Goods and Service Tax (Fourth Amendment) Rules, 2017 and shall come into force on the date of publication in the Official Gazette.

Relevant points with respect to Exporters are as follows:

1. Para 2 (ii) of the Notification has substituted the Rule 34 with regards to exchange rate to read as:

“34. Rate of exchange of currency, other than Indian rupees, for determination of value. - (1) The rate of exchange for determination of value of taxable goods shall be the applicable rate of exchange as notified by the Board under section 14 of the Customs Act, 1962 for the date of time of supply of such goods in terms of section 12 of the Act.

(2) The rate of exchange for determination of value of taxable services shall be the applicable rate of exchange determined as per the generally accepted accounting principles for the date of time of supply of such services in terms of section 13 of the Act.”;

Thus, this has done away with the confusion of different rates of Customs and RBI.

2. Para 2(iv) of the notification has also amended the Rule 46 with regards to Tax Invoice endorsement giving clarity for with Supply to SEZ Unit and SEZ Developers. The amendment states that the new provision will read as:

“Provided also that in the case of the export of goods or services, the invoice shall carry an endorsement “SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS ON PAYMENT OF INTEGRATED TAX”    

or

“SUPPLY MEANT FOR EXPORT/ SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX”, as the case may be, and shall, in lieu of the details specified in clause (e), contain the following details, namely,-

(i) name and address of the recipient;

(ii) address of delivery; and

(iii) name of the country of destination:”;

3. Para 2 (v) clarifies that as per sub rule 5 in Rule 61 of CGST Rules, FORM GSTR- 3B shall be submitted electronically through common portal, either directly or through a facilitation center notified by the commissioner. 

A sub rule 6 has been also added in respect of FORM GSTR-3B.

For more information, members may kindly refer to the above Notification No.17/2017- Central Tax and make note of the same.

Thanking you,

V. ANIL KUMARp
EXECUTIVE DIRECTOR

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